Calculate the number of units Minden Company must sell

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Question - Minden Company manufactures a high-quality wooden birdhouse that sells for $25 per unit. Variable costs are $12 per unit, and fixed costs total $210,000. The company sold 30,000 birdhouses to customers during 2020. The president of Minden Company believes the following changes should be made in 2021:

1. The selling price of the birdhouse should be reduced by 20%.

2. Increase advertising by $33,000.

Assume these changes are made. Calculate the number of units Minden Company must sell in 2021 in order to break-even.

Reference no: EM132499977

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